House Prices Up Thanks to First Home Buyers
Housing demand is being driven by First Home Buyers after low interest rates, tax cuts and post-lockdown living preferences come into play. The latest quarterly report from Domain reports that since the success in containing COVID-19, and the easing of restrictions, the property market confidence has lifted. First Home Buyers are taking advantage of incentives and those with secure incomes will be lured by historically low interest rates.
Brisbane house prices have increased by 0.4% to $596,316 over the September quarter. This marks the first quarterly growth since mid-last year and reverses about one-third of the value of over the June quarter.
Domain senior research analyst Nicola Powell, said that while investment activity stalls, first home buyers are driving the market.
“Consumer confidence has made a remarkable rebound, boosted by the federal budget, success in containing the coronavirus and the prospect of further interest rate cuts,” Powell said.
“Strong buyer demand has absorbed rapidly rising new supply. With fewer investors and foreign interest, first-home buyers are taking advantage of the reduced competition, government incentives and low mortgage rates.”
Powell said that the demand for borrowing will increase as government initiatives ease off, but that it might be easier now more than ever to take out a mortgage.
“The proposed relaxing of lending standards early next year and the imminent prospect of an interest rate cut will encourage people to borrow…with less scrutiny placed on borrowers it will become easier to take out a mortgage, making access to credit simpler and quicker.”
Powell states that these circumstances are likely to boost demand for housing and, in turn, support home values.
If you are thinking about taking advantage of these incentives, let us help you with the lending process. Get in touch with us today!